OTE2601
ASSIGNMENT 3
SEMESTER 1 2025
DUE DATE: 08 July 2025
, OTE2601 – Assignment 1
QUESTION 1
1.1 What to produce
A beginner producer must analyze consumer demand to determine which goods or
services are in demand. The choice should focus on profitability, sustainability, and
market trends. For example, in a community lacking healthy food options, a producer
could focus on organic products.
1.2 How to produce
Production methods depend on available resources, technology, and cost-effectiveness.
A beginner should aim for efficient and environmentally sustainable methods. For
instance, using automated machinery may increase efficiency but must be balanced
with employment needs and capital availability.
1.3 For whom to produce
Producers must identify their target market. This includes demographics such as age,
income level, location, and preferences. Products should be tailored to the needs and
affordability of the identified consumer group to ensure demand and profitability.
1.4 General contract provisions in franchising
General contract provisions typically include:
Franchise fees: Initial and ongoing payments to the franchiser.
Operational guidelines: Standards for managing the franchise.
Brand usage rights: Terms for using the franchise's branding and trademarks.
Training and support: Provisions for ongoing training.
Territorial rights: Geographical boundaries where the franchise can operate.
Duration and renewal: Contract validity and renewal terms.
Termination clause: Conditions for ending the agreement.
Dispute resolution: Process for handling legal or commercial disputes.
[Total: 20 marks]
ASSIGNMENT 3
SEMESTER 1 2025
DUE DATE: 08 July 2025
, OTE2601 – Assignment 1
QUESTION 1
1.1 What to produce
A beginner producer must analyze consumer demand to determine which goods or
services are in demand. The choice should focus on profitability, sustainability, and
market trends. For example, in a community lacking healthy food options, a producer
could focus on organic products.
1.2 How to produce
Production methods depend on available resources, technology, and cost-effectiveness.
A beginner should aim for efficient and environmentally sustainable methods. For
instance, using automated machinery may increase efficiency but must be balanced
with employment needs and capital availability.
1.3 For whom to produce
Producers must identify their target market. This includes demographics such as age,
income level, location, and preferences. Products should be tailored to the needs and
affordability of the identified consumer group to ensure demand and profitability.
1.4 General contract provisions in franchising
General contract provisions typically include:
Franchise fees: Initial and ongoing payments to the franchiser.
Operational guidelines: Standards for managing the franchise.
Brand usage rights: Terms for using the franchise's branding and trademarks.
Training and support: Provisions for ongoing training.
Territorial rights: Geographical boundaries where the franchise can operate.
Duration and renewal: Contract validity and renewal terms.
Termination clause: Conditions for ending the agreement.
Dispute resolution: Process for handling legal or commercial disputes.
[Total: 20 marks]
